Hazelwood compo 'just won't cut it'

The former Labor Member for Morwell, Brendan Jenkins, has criticised the Victorian Government's white paper on climate change, saying it will cost jobs in the Latrobe Valley.

The Government is proposing a staged shutdown of the Hazelwood Power Station, starting with the closure of two of its eight generating units.

Mr Jenkins says the $25 million offered to the Latrobe community to adjust to the change is inadequate.

He says it is a tiny fraction of the compensation being offered to the owners of Hazelwood Power Station.

"What you're looking at is a minimum of 1,000 direct jobs, 2,000 indirect jobs, you're talking of hundreds of millions of dollars in wages alone every year and $25 million compensation afterwards over time just won't cut it," he said.

Meanwhile, the Victorian Energy Minister, Peter Batchelor, is holding meetings with the Latrobe City Council, industry representatives and unions in the Latrobe Valley today.

Mr Batchelor says the Government will create a $50 million fund, including $25 million to help workers displaced by the Hazelwood closure.

He says coal-fired generation will only be shut down as replacement renewable energy generation comes online and says $30 million will go to a carbon capture and storage project to reinforce the future of coal-fired power.

"There will be assistance, we've established an advantage fund for those people who are disadvantaged by this decision and what is needed over the course of the year that this unfolds will be developed in consultation with the local community," he said.